Minimum Capital Requirement for Foreign-Invested Companies in Vietnam

The minimum capital requirement for establishing a foreign-invested company in Vietnam is a crucial aspect for investors to consider when planning their investments. Current regulations stipulate minimum capital levels based on the type of foreign company being established. Meeting these capital requirements is essential for obtaining a business license and demonstrates the financial stability and sustainability of the business. The following details provide clarification on these requirements.

Defining Minimum Capital in Vietnam

The minimum capital for establishing a foreign direct investment (FDI) company—and businesses in general—is the minimum amount an individual or organization must allocate to legally set up and operate a company in a specific industry.

Typically, direct investment capital is used for activities related to setting up the business, including renting office space, purchasing equipment, paying for business setup services, and other related expenses. When applying for an investment registration certificate, the anticipated capital level should be sufficient to cover these essential startup costs, which the investor must justify to the registration agency.

See more: Vietnam foreign investment laws

Methods of Capital Transfer to Vietnam

For cash contributions, investors must transfer funds into a direct investment account set up at a local Vietnamese bank specifically for the business tied to the registered investment project. This account is typically established following the issuance of an investment registration certificate.

For non-cash contributions, such as loans, mobilized capital, or contributions in the form of assets, investors must adhere to applicable regulations for capital contributions. For more detailed guidance on capital transfer procedures, please consult NVCS Law Firm for professional support and advice.

Lawyer: Mr. Tony

Phone: +84 919 195 939

Email: tuulawyer@nvcs.vn

Website: nvcs.vn